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All of the Following Are True of Calls and Puts

Question 96

Multiple Choice

All of the following are true of calls and puts EXCEPT


A) the presence of options trading in the firm's stock could, by increasing trading activity, stabilize the firm's share price in the marketplace.
B) options are not a source of funding to the corporation.
C) the financial manager of a corporation has very little need to deal with options.
D) options are issued by businesses.

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